**Crypto Wallets Receive Record-Breaking $158 Billion in Illicit Funds Last Year**

A disturbing trend has emerged in the world of cryptocurrency, with blockchain intelligence experts at TRM Labs reporting a record-breaking $158 billion in illicit funds flowing into crypto wallets last year. This staggering figure represents a 145% increase from the previous year's total of $64 billion and marks a reversal of the three-year trend of declining amounts.

Despite the rise in illicit activity, the share of total on-chain volume attributed to illegal activity actually fell slightly from 1.3% in 2024 to 1.2% in 2025. However, this slight decline is overshadowed by the sheer scale of the problem, with TRM Labs attributing the spike in volumes to a combination of factors.

**Hacking Incidents: A Major Contributor to Illicit Funds**

According to TRM Labs, a total of $2.87 billion was lost to 150 hacking incidents in 2025, with the top 10 accounting for 81% of all stolen value. The most significant breach was the February 2025 Bybit hack, attributed to North Korean hackers, which resulted in approximately $1.46 billion in losses.

**Scams Continue to Plague the Sector**

The sector also saw a high level of scam activity in 2025, with approximately $35 billion in cryptocurrency sent to fraud schemes throughout the year. Investment scams dominated the landscape, accounting for 62% of total inflows and including romance baiting, Ponzi schemes, and fake task scams.

**Ransomware-Linked Cryptocurrency Inflows Remain Elevated**

Ransomware-linked cryptocurrency inflows remained elevated over the past year, although they did not reach the levels seen in previous years. TRM Labs observed that more and more victims are now resisting paying ransom to cybercriminals.

**Ecosystem Fragmentation and Ransom Laundering Operations Continue to Evolve**

The report also notes unprecedented ecosystem fragmentation, with 161 active strains and 93 variants added in 2025 alone. Ransom laundering operations continued to evolve last year, with mixer usage falling by 37% while bridge usage and cross-chain routing increased by 66%.

In light of these findings, it's clear that the cryptocurrency sector remains a haven for illicit activity. As the industry continues to grow and mature, it's essential that stakeholders prioritize security and take steps to prevent these types of incidents from occurring in the future.